LedgerX receives investment from Miami International Holdings Inc

Investing | December 28, 2016 By:

LedgerX, an institutional trading platform that hopes to be the first federally regulated derivatives clearing organization for digital-based options, recently received an investment from Miami International Holdings Inc.

MIH also played a key role in bringing together a consortium of other investors who have co-invested with MIH in Ledger Holdings. Early investors in Ledger Holdings include Google Ventures and Lightspeed Venture Partners.

LedgerX will promptly seek approval from the U.S. Commodity Futures Trading Commission (CFTC) to be registered as a derivatives clearing organization (DCO) and a swap execution facility (SEF) for options based on digital currency. LedgerX’s initial plan is to list and clear fully collateralized, physically settled options on bitcoin and other forms of digital currency. If approved by the CFTC, LedgerX would be the first federally regulated DCO and SEF permitted to offer both a trading facility and clearing services for options based on digital currency for the institutional market.

In connection with MIH’s investment, the parties also entered into an agreement whereby MIH received a 10-year, exclusive worldwide right to license equity or fixed income products related to digital currencies that are developed by LedgerX and to develop its own equity or fixed income derivatives products based on such LedgerX products to be listed on MIAX Options and MIAX PEARL, MIH’s second options exchange. MIH also secured similar rights for securities to be listed on its MIAX Equities Exchange, once launched. Additionally, MIH’s technology subsidiary, MIAX Technologies, and LedgerX will pursue technology support and services opportunities per the terms of their agreement.